Tidal Energy Project Powers Ahead
Wednesday 31 August 2016
With Scottish Enterprise's support, MeyGen's groundbreaking tidal energy project has the potential to be a ‘game-changer’ for Scotland and for the global renewables industry.
MeyGen’s tidal energy project in the Pentland Firth will generate clean, predictable, green electricity and position Scotland as the world leader in marine energy generation, thanks to the Scottish Investment Bank.
The first phase of the MeyGen project is currently under construction as a result of the Scottish Investment Bank’s Renewable Energy Investment Fund (REIF). The fund has committed £19.6 million as part of an overall funding package worth £51.3 million to progress the project.
Surge of activity
As part of the first phase, four giant underwater turbines will deliver enough clean energy to power 3,000 homes.
Two hundred and sixty nine turbines will eventually be installed on the MeyGen project site, producing 398MW – enough to power 175,000 homes and support more than 100 jobs. Its success will help place Scotland at the forefront of tidal power generation, which has the potential to deliver high quality engineering jobs, manufacturing and direct foreign investment.
Tim Cornelius, CEO of Atlantis, owners of the MeyGen project, said: “MeyGen is Europe’s largest tidal power project and the world’s first commercially funded tidal array.
“The involvement of REIF was instrumental in getting the project finance package required to undertake Phase 1 of this seminal project. MeyGen is now the poster child for marine energy sector globally.
“It’s a very exciting time for us and the sector as a whole. Tidal power could soon be in a position to make an important contribution to the UK’s energy mix. Tidal power could help deliver clean, predictable, sustainable and secure energy to millions of homes in the UK, making use of the highly sophisticated existing supply chain already present in Scotland.
“We would not have reached this stage without support from REIF, Scottish Enterprise and Scottish Government. Their support has allowed the industry to power ahead, and Scotland to lead the world.”
Long-term support
We've been involved with the MeyGen project since 2006 through our international arm, Scottish Development International.
The Scottish Investment Bank’s REIF team became actively engaged with the project in 2013, spending more than a year negotiating a package of debt and equity funding with key funding partners including The Crown Estate, the Scottish Government, the Department of Energy and Climate Change, Highlands and Islands Enterprise and Atlantis Resources Limited, as principal project developer.
REIF’s contribution is the biggest single investment made by the Scottish Investment Bank to date.
Andrew Smith, Head of REIF, said: “The funding package put together for the first stage of the MeyGen project was highly complex and involved close collaboration amongst a number of industry partners.
“MeyGen is crucial to our ambitions of growing our marine renewables sector and establishing a supply chain in Scotland. We have the engineering expertise and skills to export marine technology all over the world.”